Trading analysis

DAX (a 4-hour chart)

General overview

DAX traded lower on Thursday as traders remained cautious ahead of the Italian referendum on Saturday. European stocks were slightly supported by growing oil prices.

Current situation

DAX remained under pressure and traded lower on Thursday. Prices broke the level 10600 and dropped to 10550 where sellers took a pause. Sellers began pushing the price lower in the North American session. The benchmark broke the 200 and 100 EMAs and headed lower in the 4 hours chart. The 100 and 200 EMAs remained neutral while the 50-EMA turned lower. The resistance exists at 10600, the support stands at 10500.

The MACD histogram decreased which is a sell signal. RSI moved downwards.

Trading recommendations

After a close below the support at 10500 we could see DAX extend its declines down to 10400.

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